05/12/2006

Kilway cleared by prosecutors

They say she didn't break the law with side work

BY IAN C. STOREY

istorey@record-eagle.com

Kilway

LELAND — Leelanau treasurer Vicki Kilway didn't break the law by working on the side for a company she hired to handle county title matters, state and local prosecutors said.

Leelanau Prosecutor Joseph Hubbell said a review by the state attorney general's office determined Kilway did not break any laws by working on the side for Title Check LLC, of Kalamazoo.

Kilway hired the firm last year to do title work on approximately 300 delinquent properties at a cost of about $30,000.

"(The state) found it is a situation where a lot of treasurers are providing this type of service and there is really no clear law one way or the other," Hubbell said. "I find nothing in this investigation as presented which would give rise to any action by my office."

Kilway, 54, hired Title Check to do work under Public Act 123 of 1999, which gives county treasurers the authority to conduct title work or contract for services to collect taxes on delinquent properties.

Title Check in turn hired Kilway to do 30 or 40 "10-minute jobs" during the last year, said general manager Marty Spaulding.

"I knew I was acting within the statutes and that I had not done anything wrong," said Kilway, who said she cleared about $1,800 for the work. "I am glad this issue has been put to rest. It is time to get on with the business in this office and go forward."

A complaint alleging possible "unethical or criminal misconduct" against Kilway was filed by Deputy Treasurer Chris Mikowski last September, according to records obtained by the Record-Eagle through the state's Freedom of Information Act.

The complaint, received by the sheriff's department, was forwarded to the Michigan State Police to avoid the "appearance of impropriety," Leelanau Sheriff Mike Oltersdorf said.

In a May 2 letter to Hubbell, state assistant attorney general Kim Warren Eddie said in her opinion she could "find nothing" in the investigation to warrant criminal action against Kilway.

Mikowski's complaint prompted a September response from Kilway that asked for an explanation from Mikowski, including Mikowski's interest in "personal mail" Kilway received from Title Check.

"Your actions have not only questioned my integrity but have also violated my privacy," Kilway wrote. "It is an indication you have little trust in me and by what you have just done, it has definitely reduced my trust in you as an employee and as a friend."

See related story:

• Treasurer is under investigation - May 6, 2006